Astera Labs (NASDAQ:ALAB) Trading Down 9.7% – Time to Sell?

Astera Labs, Inc. (NASDAQ:ALAB)’s share price dropped 9.7% on Tuesday . The stock traded as low as $392.89 and last traded at $397.02. Approximately 6,455,858 shares changed hands during mid-day trading, an increase of 13% from the average session volume of 5,711,881 shares. The stock had previously closed at $439.66.

Analyst Upgrades and Downgrades

A number of research firms have commented on ALAB. Rothschild & Co Redburn initiated coverage on Astera Labs in a research note on Friday, May 1st. They set a “neutral” rating and a $153.00 price target on the stock. Bank of America boosted their price objective on Astera Labs from $240.00 to $450.00 and gave the company a “neutral” rating in a report on Tuesday. TD Cowen raised their target price on Astera Labs from $140.00 to $225.00 and gave the company a “hold” rating in a report on Wednesday, May 6th. JPMorgan Chase & Co. lifted their target price on Astera Labs from $205.00 to $280.00 and gave the company an “overweight” rating in a research report on Wednesday, May 6th. Finally, Roth Mkm reiterated a “buy” rating and set a $275.00 price target on shares of Astera Labs in a research note on Wednesday, May 6th. Twelve investment analysts have rated the stock with a Buy rating and eleven have assigned a Hold rating to the company. According to data from MarketBeat, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $244.75.

Astera Labs Price Performance

The firm has a 50 day moving average of $270.63 and a two-hundred day moving average of $189.58. The stock has a market cap of $68.05 billion, a PE ratio of 268.26, a PEG ratio of 5.52 and a beta of 3.95.

Astera Labs (NASDAQ:ALAB) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.61 earnings per share for the quarter, beating analysts’ consensus estimates of $0.54 by $0.07. Astera Labs had a net margin of 26.72% and a return on equity of 18.49%. The firm had revenue of $308.36 million during the quarter, compared to analysts’ expectations of $292.19 million. During the same period in the previous year, the company earned $0.33 earnings per share. Astera Labs’s quarterly revenue was up 93.5% compared to the same quarter last year. Astera Labs has set its Q2 2026 guidance at 0.680-0.700 EPS. As a group, equities analysts anticipate that Astera Labs, Inc. will post 1.84 EPS for the current fiscal year.

Insiders Place Their Bets

In other Astera Labs news, COO Sanjay Gajendra sold 400,000 shares of Astera Labs stock in a transaction that occurred on Thursday, May 21st. The stock was sold at an average price of $290.30, for a total transaction of $116,120,000.00. Following the transaction, the chief operating officer owned 5,064,213 shares of the company’s stock, valued at $1,470,141,033.90. The trade was a 7.32% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Manuel Alba sold 183,000 shares of the stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $107.61, for a total value of $19,692,630.00. Following the completion of the sale, the director directly owned 319,863 shares of the company’s stock, valued at $34,420,457.43. The trade was a 36.39% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 2,161,256 shares of company stock valued at $459,844,296 over the last quarter. Company insiders own 10.40% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the business. Atreides Management LP raised its holdings in shares of Astera Labs by 108.9% in the first quarter. Atreides Management LP now owns 3,365,787 shares of the company’s stock valued at $368,890,000 after buying an additional 1,754,593 shares during the last quarter. Amundi increased its position in Astera Labs by 1,298.6% in the 3rd quarter. Amundi now owns 1,421,263 shares of the company’s stock valued at $278,283,000 after acquiring an additional 1,319,643 shares during the period. Rafferty Asset Management LLC acquired a new position in Astera Labs in the 3rd quarter valued at about $209,599,000. BNP Paribas Financial Markets raised its stake in Astera Labs by 577.3% during the 3rd quarter. BNP Paribas Financial Markets now owns 1,127,340 shares of the company’s stock valued at $220,733,000 after acquiring an additional 960,899 shares during the last quarter. Finally, Artisan Partners Limited Partnership purchased a new stake in Astera Labs during the 4th quarter valued at approximately $148,980,000. 60.47% of the stock is owned by hedge funds and other institutional investors.

Astera Labs Company Profile

Astera Labs is a fabless semiconductor company that develops connectivity solutions for data center and cloud infrastructure. The firm focuses on addressing signal integrity and link management challenges that arise as server architectures incorporate higher-bandwidth processors and accelerators. Its technology is aimed at improving reliability and performance for high-speed interconnects used in servers, storage systems and compute accelerators.

The company’s product portfolio centers on silicon devices and accompanying firmware and software that enhance and manage high-speed links.